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ABI Journal

November 07, 2023

Lawyer Must Disclose a Client’s Misconduct, Even When It’s ‘Uncomfortable’

Lawyers aren’t guarantors for a client’s misconduct, but they may be sanctioned for a coverup.

3rd Circuit, Pennsylvania, Pennsylvania Western District

November 06, 2023

Properly Written, a Divorce Decree Doesn’t Create a Debtor/Creditor Relationship

A properly written divorce decree can create a separate property interest that won’t be part of the bankruptcy estate of a bankrupt spouse.

10th Circuit, New Mexico

November 03, 2023

Judge Explains Why Tax Liens Are Subordinated to Domestic Support Obligations

Congress decided to deviate from standard priorities by providing in Section 724 that unsecured domestic support obligations come ahead of tax liens.

2nd Circuit, New York, New York Eastern District

October 27, 2023

Filing Bankruptcy After Renewing a Title Loan Again Found Not to Be Bad Faith

Title lenders continue losing battles to take cars away from debtors, but the lenders have yet to plead and prove their best cases.

11th Circuit, Alabama, Alabama Middle District

October 20, 2023

Fifth Circuit Expands Bartenwerfer to Saddle Alter Egos with Nondischargeable Debts

An alter ego may be of the same ilk as a partnership or agency, so there may be no inconsistency between the Fifth Circuit opinion and the Bartenwerfer concurrence.

5th Circuit

October 19, 2023

State Law Lines Up with Federal Judicial Estoppel When Assets Aren’t Scheduled

Oregon Supreme Court allows substitution of a bankruptcy trustee as the real party in interest because denial would chiefly punish the debtor’s creditors.

9th Circuit, Oregon

October 18, 2023

Bankruptcy Courts Have Statutory Power to Remove Voided Liens

Bankruptcy Rule 7070, incorporating Federal Rule 70 along with 28 U.S.C. § 1655, gives bankruptcy courts power to remove liens of record when the lenders don’t do so voluntarily.

9th Circuit, California, California Eastern District

October 06, 2023

Debtors May Avoid Judicial Liens Under Section 522(f) Securing Nondischargeable Debts

Bankruptcy Judge Alan Koschik declined to follow cases decided before Congress amended Section 522(f) to preclude avoiding judicial liens securing domestic support obligations.

6th Circuit, Ohio, Ohio Northern District

October 04, 2023

Student Loans Consolidated After Filing Can’t Be Discharged, Even for Undue Hardship

Consolidating student loans after filing creates a post-petition debt that can’t be discharged without filing bankruptcy again.

5th Circuit, Texas, Texas Western District

October 03, 2023

It’s Ok to Avoid a Fraudulent Transfer Even if It Makes the Debtor Solvent, Circuit Says

The Second Circuit found discretion to avoid a constructively fraudulent transfer of exempt property that would have enabled the debtor to pay her creditors in full.

2nd Circuit